What to know about major economic policies in effect this year
VOV.VN - Several important economic policies are taking effect this year, directly impacting individuals and businesses.
1. VAT Reduction
According to Resolution No. 174/2024/QH15, the National Assembly has decided to continue reducing the value-added tax (VAT) by 2% to 8% on certain goods and services from January 1 to June 30. However, industries such as telecommunications, information technology, finance, banking, insurance, and real estate business will not be eligible for this reduction.
The policy, that has been in effect since January 1, 2024, aims to support post-pandemic economic recovery and development and reduce cost burdens for businesses and individuals.
2. Amendments to 2019 Tax Administration Law
The 2024 amendments to the 2019 Tax Administration Law introduce new measures to improve tax collection and enforcement. Taxpayers must accurately, truthfully, and fully declare tax documents and bear legal responsibility for the information provided.
The law also enhances tax management for e-commerce. Accordingly, foreign service providers must register, declare, and pay taxes in Vietnam, and commerce platforms must withhold and remit taxes on behalf of sellers.
These regulations are designed to strengthen tax oversight in response to the rapid growth of the digital economy.
3. Mandatory use of E-invoices for public asset sales
According to Government Decree No. 151/2017/ND-CP (amended), from January 1, 2025, all transactions involving the sale of public assets must use electronic invoices (e-invoices) to increase transparency and reduce fraud risks in public asset transactions.
4. End of VAT exemption for low-value imported goods
The National Assembly has decided to end VAT exemptions for imported goods valued less than VND1 million (US$40) shipped via express delivery, effective January 14, 2025. This policy aims to tighten tax compliance and increase revenue from international trade.
5. Biometric authentication required for bank transfers
From January 1, 2025, customers must complete biometric verification to perform electronic payment transactions.
Accordingly, account holders must verify their identity using biometric data (fingerprint, facial recognition, or other government-issued identification) through banks or Vietnam’s electronic identification system (VNeID) before withdrawing or making digital payments.
Online card transactions will require biometric authentication, while in-person card transactions (POS payments) will not require biometric verification.
This policy enhances security in digital banking and prevents fraud.
6. New social insurance rules – pension eligibility from 15 years of contributions
Under the 2024 Social Insurance Law due to take effect on July 1, 2025, employees who have paid social insurance for at least 15 years and have reached retirement age will be entitled to a monthly pension, subject to specific conditions.
Individuals who join the social insurance policy can withdraw their social insurance contributions once in certain cases as of July 1, 2025.
- Employees reach retirement age but have less than 15 years of contributions
- Individuals permanently relocate abroad
- Those diagnosed with severe diseases (e.g., cancer, paralysis, end-stage liver disease, severe tuberculosis, or AIDS)
- People with at least 81% loss of working capacity
- Persons with severe disabilities
In addition, a new social pension allowance will be provided to Vietnamese citizens aged 75 or older who do not receive a pension, social insurance benefits, or other monthly allowances. The state budget will cover these social pension payments.
These changes aim to expand pension coverage and improve social welfare for older individuals in Vietnam.
